Costamare Inks Deal for Newbuild Boxship Duo
- Business & Finance
Containership owner Costamare Inc. has together with its partner York Capital ordered two 3,800 TEU newbuild containerships from Chinese shipbuilder Jiangsu New Yangzi Shipbuilding Co., Ltd.
The two newbuildings are slated for delivery in the first and second quarter of 2018 respectively and upon delivery will commence a seven-year time charter to members of Hamburg Süd Group, Costamare said.
The vessels will be jointly owned by Costamare and York Capital holding respectively 49% and 51%.
Costamare said that the acquisition is expected to be financed with cash from operations and debt pursuant to a committed Term Sheet with an unnamed Asian financial institution.
“The completion of our latest transaction marks a major milestone in our highly valued relationship with Hamburg Süd. In a challenging market environment we will continue to source and execute transactions, which will benefit our shareholders,” Gregory Zikos, Chief Financial Officer of the company, said.
Costamare Inc. has a fleet of 73 containerships, with a total capacity of approximately 470,000 TEU, including 12 newbuild containerships on order and one secondhand vessel to be delivered.
Eighteen of Costamare’s containerships, including 12 newbuilds, have been acquired pursuant to the Framework Agreement with York Capital Management by vessel-owning joint venture entities in which Costamare holds a minority equity interest.